Goldman Sachs Bullish on Micron Ahead of December 17 Report: Leveraged Trades With Single-Stock Leveraged ETFs

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Micron Technology (MU) reports fiscal Q1 2026 earnings on December 17th after market close, with Wall Street watching whether the memory chip giant can sustain momentum from what many are calling a once-in-a-decade supercycle. The stock has surged more than 130% in the past year, driven by an unprecedented shortage of AI-optimized memory that's reshaping the entire semiconductor landscape.

MU shares recently touched a 52-week high of $264.75 before pulling back slightly. This remarkable run reflects a fundamental shift in memory market dynamics: the explosive buildout of AI data centers has created supply bottlenecks for both DRAM and the specialized High Bandwidth Memory (HBM) chips that power AI accelerators. Even Dell executives recently called out memory shortages as a growing challenge, noting costs are "moving at rates we've never seen."

For active traders looking to capitalize on Micron's characteristically volatile earnings moves, Direxion's Daily MU Bull 2X Shares (MUU) and Daily MU Bear 1X Shares (MUD) provide tactical tools to amplify bullish bets or hedge against disappointment without requiring margin accounts or options* approval.

Q1 Fiscal 2026 Earnings Expectations and Volatility

Wall Street expects Micron to report earnings of $3.58 per share in Q1, representing massive 121% growth from the $1.62 reported in the same quarter last year. This continues the company's pattern of exceptional growth as memory demand from AI infrastructure overwhelms supply.

The company's recent earnings history shows consistent outperformance. Micron beat expectations in all four of the past quarters, including Q4 fiscal 2025 when it delivered $3.03 per share and signaled strong momentum continuing into fiscal 2026. The stock routinely experiences significant volatility surrounding their earnings releases as traders digest not just the quarterly numbers, but management's commentary on memory pricing trends and AI demand visibility.

Options markets are pricing in elevated volatility, with implied volatility at about 69%—reflecting expectations for significant post-earnings movement. 

Goldman Sachs recently issued bullish commentary ahead of the report, citing sustained demand and pricing strength that should support results above consensus estimates.

AI Memory Supercycle Driving Micron's Momentum

The memory market is experiencing dynamics that few in the industry have witnessed. AI workloads require exponentially more memory than traditional computing, and the supply chain simply wasn't prepared for the scale of demand that emerged following ChatGPT's 2022 launch.

Three major factors are converging to support Micron's trajectory. First, hyperscale cloud providers are investing hundreds of billions in AI-optimized data centers, each requiring vast amounts of DRAM and HBM. Second, memory manufacturers can't expand production capacity quickly—new fabs take years and billions to build. Third, the transition to more advanced memory technologies like HBM3E creates additional supply constraints as manufacturers retool production lines.

The result: memory prices have surged after years of cyclical weakness. DRAM prices climbed over 36% year-over-year in Micron's most recent quarter, while the company's HBM production remains sold out for fiscal 2026. 

Goldman Sachs analysts noted that "compute needs are accelerating rapidly," with some AI reasoning models requiring 100 times more compute and memory than earlier applications.

Recent corporate developments underscore this strategic focus. Micron announced in early December that it would exit the Crucial consumer products business to concentrate resources entirely on high-performance memory for data centers, AI, and enterprise applications. This streamlining signals management's confidence that AI-driven demand will sustain growth for years.

Trading MU Earnings With Direxion's Leveraged Single-Stock ETFs

Micron's combination of strong fundamentals and elevated volatility creates opportunities for traders with directional conviction. Direxion's single-stock leveraged and inverse ETFs provide amplified exposure without the complexities of margin trading or options strategies.

Bullish Trade: MUU

Direxion Daily MU Bull 2X Shares (MUU) seeks 200% of Micron's daily performance through financial instruments.

• Targets 200% of MU's daily performance
  • When Micron rises 1%, MUU aims for a 2% gain (before fees)
  • When Micron falls 1%, MUU typically drops 2% (before fees)
• Ideal for traders expecting continued AI memory demand strength or positive earnings surprises
• Launched October 10, 2024, the fund has captured Micron's explosive run with 200% gains since inception
• Average daily volume: 1.4 million shares
• Designed for active traders seeking amplified participation in memory supercycle momentum

Bearish Hedge: MUD

Direxion Daily MU Bear 1X Shares (MUD) provides inverse exposure to Micron without requiring short-selling** capabilities. Note that MUD seeks -100% (1X inverse), not -200%, making it less aggressive than some other inverse products.

• Aims for inverse (-1X) daily performance versus MU
  • When Micron drops 1%, MUD aims for a 1% gain (before fees)
  • When Micron rises 1%, MUD typically falls 1% (before fees)
• Valuable for traders concerned about valuation stretch after the 132% rally or potential earnings disappointment
• Allows retirement account holders to express bearish views without short-selling restrictions
• Average daily volume: 3.2 million shares
• Functions as tactical hedge given semiconductor sector volatility

Both MUU and MUD reset their exposure daily and work best as short-term trading tools rather than buy-and-hold investments. These products require active oversight and are designed for traders who understand leverage effects, inverse mechanics, and daily rebalancing dynamics.

Important note on holding periods: Unlike traditional ETFs, these leveraged and inverse products are designed for single-day trading horizons. The funds will lose money if Micron's performance is flat over extended periods, and compounding effects mean multi-day returns will differ—sometimes significantly—from simple multiples of Micron's performance over the same period.

Key Factors for December 17th Results

Several elements will drive Micron's stock reaction when the company reports on December 17^th (date is subject to change):

• Memory Pricing Trends: Whether DRAM and NAND pricing strength continues, especially for AI-optimized HBM products.
• Fiscal Q2 Guidance: Forward projections for the crucial January quarter and commentary on full-year fiscal 2026 outlook.
• HBM Production and Capacity: Updates on High Bandwidth Memory ramp and customer qualifications for next-generation HBM3E.
• AI Data Center Demand: Management commentary on sustainability of AI infrastructure investment from hyperscalers.
• Gross Margin Trajectory: Whether margins continue expanding as product mix shifts toward higher-value AI memory.
• Inventory Dynamics: Supply chain positioning and whether shortages will persist through 2026.

Wall Street's consensus remains overwhelmingly bullish, with 28 "Strong Buy" ratings among 37 analysts covering the stock. 

The average price target of $238.76 sits slightly below current levels, though the street-high $362 target from the most bullish analysts suggests significant upside remains if the memory supercycle continues, as some expect.

With Micron essentially functioning as a leveraged bet on AI infrastructure investment, these leveraged and inverse ETFs provide traders with precision instruments to express conviction—or protect portfolios—around what promises to be one of December's most closely watched earnings reports.

*Options are financial instruments that provide the right, but not the obligation, to buy or sell an underlying asset at a set strike price.

**Short-selling means borrowing shares to sell them, hoping to repurchase at lower prices later.

To learn more about all Direxion's Single Stock Leveraged and Inverse ETFS, Click Here

Investing in the funds involves a high degree of risk. Unlike traditional ETFs, or even other leveraged and/or inverse ETFs, these leveraged and/or inverse single-stock ETFs track the price of a single stock rather than an index, eliminating the benefits of diversification. Leveraged and inverse ETFs pursue daily leveraged investment objectives, which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying stock’s performance over periods longer than one day. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. The Funds will lose money if the underlying stock’s performance is flat, and it is possible that the Bull Fund will lose money even if the underlying stock’s performance increases, and the Bear Fund will lose money even if the underlying stock’s performance decreases, over a period longer than a single day. Investing in the Funds is not equivalent to investing directly in MU.

An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing.  A Fund’s prospectus and summary prospectus contain this and other information about the Direxion Shares.  To obtain a Fund’s prospectus and summary prospectus call 866-476-7523 or visit our website at direxion.com.  A Fund’s prospectus and summary prospectus should be read carefully before investing.

Direxion Shares Risks – An investment in a Fund involves risk, including the possible loss of principal. Each Fund is non-diversified and includes risks associated with a Fund concentrating its investments in a particular security, industry, sector, or geographic region which can result in increased volatility. A Fund’s investments in derivatives such as futures contracts and swaps may pose risks in addition to, and greater than, those associated with directly investing in securities or other investments, including imperfect correlations with underlying investments or the Fund’s other portfolio holdings, higher price volatility and lack of availability. As a result, the value of an investment in a Fund may change quickly and without warning.

Leverage Risk – The Bull Fund obtains investment exposure in excess of its net assets by utilizing leverage and may lose more money in market conditions that are adverse to its investment objective than a fund that does not utilize leverage. A total loss may occur in a single day. Leverage will also have the effect of magnifying any differences in the Fund’s correlation with MU and may increase the volatility of the Bull Fund.

Daily Correlation Risk – A number of factors may affect the Bull Fund’s ability to achieve a high degree of correlation with MU and therefore achieve its daily leveraged investment objective. The Bull Fund’s exposure to MU is impacted by MU’s movement. Because of this, it is unlikely that the Bull Fund will be perfectly exposed to MU at the end of each day. The possibility of the Bull Fund being materially over- or under-exposed to MU increases on days when MU is volatile near the close of the trading day.

Daily Inverse Correlation Risk – A number of factors may affect the Bear Fund’s ability to achieve a high degree of inverse correlation with MU and therefore achieve its daily inverse investment objective. The Bear Fund’s exposure to MU is impacted by MU’s movement. Because of this, it is unlikely that the Bear Fund will be perfectly exposed to MU at the end of each day. The possibility of the Bear Fund being materially over- or under-exposed to MU increases on days when MU is volatile near the close of the trading day.

Micron Technology, Inc. – MU faces risks associated with the highly competitive nature of the semiconductor industry; economic and market uncertainty; reductions in demand for its products; potential concentration of revenues in a few large clients as among other risks.

Semiconductor Industry Risk – Semiconductor companies may face intense competition, both domestically and internationally, may have limited product lines, markets, financial resources or personnel and may face risks related to the availability of materials.

Information Technology Sector Risk — The value of stocks of information technology companies and companies that rely heavily on technology is particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation, and competition, both domestically and internationally, including competition from competitors with lower production cost.

Additional risks of each Fund include Effects of Compounding and Market Volatility Risk, Derivatives Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Industry Concentration Risk, Market Risk, Indirect Investment Risk, and Cash Transaction Risk. Additionally, for the Direxion Daily MU Bear 1X Shares, Shorting or Inverse Risk.  Please see the summary and full prospectuses for a more complete description of these and other risks of a Fund.

Distributor: ALPS Distributors, Inc.

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